If you are one of those persons who wishes to invest in properties in Australia, then it is high time you had a closer look at the various changes to the real estate market. This is because there have been some big changes to the rules and regulations covering buying and selling of properties especially when it comes to foreigners. That’s key reason why role of the certified property valuation company in Sydney is so big in coming years too.
As per the rules that were prevailing before these amendments, backing from a contract to buy or sell a property once it has been entered into would be quite difficult and virtually impossible in most of the cases. However, the recent amendments to the rules now allow for what is termed as a “cooling off period”. As per the amendment that is now in force, the buyer has three days during which time he or she could inform their decision to rescind from the contract irrespective of what has been entered into the agreement between the buyers and the sellers. While this augurs well for buyers, many sellers have been left fuming by this new law. Nonetheless when one looks at it from a fair business practices point of view, this change is very much in line with good business procedures and methods.
However, it should also be borne in mind that there are some exceptions to this rule which the buyers should also be aware of. A few such exceptions are given below:
• These changes to the law will not be applicable in case of auctioned properties that have been bought either three days before or three days after the date in which such auction advertisements have been published.
• If the same buyers and sellers have entered into a similar contract under similar circumstances, then too, the changes to the laws will not be binding on the sellers.
• These changes are only applicable for those properties that have been purchased for residential purposes. In case they are for industrial and commercial use, the law will not apply to both the stake holders.<
• If a buyer happens to be a corporate body or real estate agent then he is not entitled to such “cooling off” period.
• Those who are buying such properties mainly with the objective of farming or if the size of the property in question exceeds 20 hectares, then the changes to the property rules will not apply.
However there is a small penalty that is payable by the purchaser if he or she decides to exercise this cooling off option. This is equivalent to 0.2% of the agreed purchase price or $100 whichever is higher. This amount is either payable by the buyer to the seller or if the seller has received any advance payment, then the seller is within his
Hence, as a customer and also as a seller, being aware of these recent changes to property rules and regulations is very important.